United States v. Coker

Procedural entryThis page is a short order in United States v. Coker. Read the opinion of the Court — 514 F.3d 562
Court of Appeals for the Sixth Circuit·Decided January 24, 2008·No. 06-6504·Published

Opinion

RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit Rule 206 File Name: 08a0043p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT _________________

X Plaintiff-Appellee, - UNITED STATES OF AMERICA, - - - No. 06-6504 v. , > NATALIE COKER, - Defendant-Appellant. - N Appeal from the United States District Court for the Middle District of Tennessee at Nashville. No. 05-00232—Robert L. Echols, District Judge. Argued: October 26, 2007 Decided and Filed: January 24, 2008 Before: BOGGS; Chief Judge; KENNEDY, Circuit Judge; and JORDAN, District Judge.* _________________ COUNSEL ARGUED: Richard J. Braun, BRAUN & CROTWELL, Nashville, Tennessee, for Appellant. Eli Richardson, ASSISTANT UNITED STATES ATTORNEY, Nashville, Tennessee, for Appellee. ON BRIEF: Richard J. Braun, BRAUN & CROTWELL, Nashville, Tennessee, for Appellant. Eli Richardson, ASSISTANT UNITED STATES ATTORNEY, Nashville, Tennessee, for Appellee. _________________ OPINION _________________ BOGGS, Chief Judge. A grand jury indicted Natalie Coker on five counts of conspiring to defraud the United States, taking bribes, and violating the federal conflict of interest laws. Coker pleaded guilty to a single count of committing an illegal conflict of interest, in return for having the other charges dropped. The district judge sentenced her to forty-six months of imprisonment. Coker appeals, arguing that prosecutorial misconduct and incorrect guidelines calculations warrant vacating her sentence. We affirm because her various arguments are either waived, withdrawn, or meritless.

* The Honorable R. Leon Jordan, United States District Judge for the Eastern District of Tennessee, sitting by designation.

1 No. 06-6504 United States v. Coker Page 2

I Natalie Coker worked as the Assistant Director of the Veteran’s Administration’s Consolidated Mail Outpatient Pharmacy (“CMOP”) in Murfreesboro, Tennessee. Her supervisor was Joseph Haymond. CMOP mailed subsidized prescription drugs to veterans. In 1999, Coker and Haymond, aided by several co-conspirators, began exploiting their public jobs for personal gain. A One co-conspirator, Michael Walsh, owned Industrial Supply Company. In 1999, he learned from a business associate, Dick Pruett, that CMOP was looking for someone to supply security tape at a lower price than the $18.50 per roll CMOP was paying 3M. Walsh found a vendor in New Jersey, CGM, willing to sell tape for $2.50 a roll.1 After Haymond approved samples of the tape, Pruett arranged a meeting on August 19, 1999, between himself, Haymond, Coker, and Walsh to discuss the sale. At the meeting, Haymond told Walsh to sell the tape to CMOP for $6.51 per roll, pay Haymond and Coker each a kickback of $1 per roll, and keep the rest. Coker told Walsh to subdivide each order into smaller parts to circumvent official purchasing rules and facilitate the kickback. Soon afterwards, Walsh began selling tape to the CMOP. He later raised his price to $6.90 to help cover the taxes he was paying on the sales. Coker and Haymond knew of, and did not object to, the price increase. Walsh testified that his usual markup was 30% and, absent the kickbacks, he would have sold the tape for between $3.40 and $3.50 a roll. Over the next 22 months, Walsh sold over 115,000 rolls of tape to CMOP, and paid Coker and Haymond over $115,000 each in kickbacks. The scheme ended in 2001 when the VA’s regional purchasing department took over the tape purchases. Walsh continued to sell other supplies to CMOP after the tape conspiracy ended. In early 2004, Haymond told Walsh that CMOP had sixteen extra pallets of six-by-nine mailer bags and asked if Walsh could sell them elsewhere. Walsh contacted Jay Cooper, Director of the Dallas CMOP. Walsh knew Cooper from previous deals, unrelated to CMOP, where Walsh had paid kickbacks to Cooper, and this time Walsh convinced Cooper to buy five of the pallets from CMOP. After the sale, Haymond sought his usual kickback, and told Walsh to pay Coker her cut immediately because she “needed the money.” Coker’s share was $3500. Coker then ordered Walsh to write, on Walsh’s stationary, a letter explaining the sale that would help Coker justify the sale in case the CMOP was ever audited. Walsh complied. In fall 2005, Walsh began cooperating with the FBI’s investigation into the CMOP and agreed to wear a wire during his conversations with Haymond and Coker. Another co-conspirator, Michael Barrett, practiced law in Alabama until he was disbarred for, as he euphemistically put it, “using some client funds to pay bills.” He then entered the consulting business with his partner Kevin Bowling. They founded EconoGenesys, which made money by helping other businesses win government contracts and then taking a commission on the contract. Around January 2002, another VA employee referred Coker and Haymond to Barrett for advice. Several months later, Barrett began connecting contractors with the CMOP. From 2000–03, about ninety percent of EconoGenesys’s revenue came from placing clients with the CMOP. Coker and Haymond knew about the contracts, and they hired Barrett as a temporary employee of the CMOP from July to October 2002.

1 The price difference reflects a quality difference. 3M’s tape was “tamper evident” and Walsh initially told CGM that he wanted “tamper evident” tape, but the tape Walsh ended up buying and reselling to CMOP was not in fact “tamper evident.” No. 06-6504 United States v. Coker Page 3

Sometime during Barrett’s temporary employment, Haymond and Coker gave Barrett a spreadsheet showing all the contracts that Barrett had set up with CMOP. They demanded that Barrett pay them half of his profits. Barrett protested that if he paid them half, he would end up losing money after taxes. Coker responded that the taxes were Barrett’s problem, and that if he did not pay, he “would be out of the CMOP and she would tell everyone what a sorry bastard [he] was.” The three of them met again several weeks later, and Barrett agreed to pay the kickbacks as demanded. Barrett began making payments and continued to do so until the end of 2003. He paid Haymond and Coker a combined total of between $60,000 and $90,000. Around the time of Barrett’s temporary work for CMOP, Coker and Haymond also asked Barrett to find a reliable company to repack, or prepack, prescription drugs into specific quantities and then ship the drugs to patients. When Barrett told his business partner Kevin Bowling of the request, Bowling suggested that Bowling’s father-in-law Bob Allen might be interested in forming a company to handle the job. Barrett, Bowling, Allen, Coker, and Haymond met to discuss the details of the operation, and then Bowling, Allen, and two other minor investors formed PrePak Systems, Inc. (“PrePak”) to handle the job. Coker helped PrePak with initial logistical and regulatory issues and wrote a formal letter to help PrePak obtain credit. PrePak received the contract in May 2003. At the same time that Coker was advising PrePak’s start-up operations and helping PrePak win the CMOP contract, Coker began to negotiate with PrePak for employment. These negotiations took place over e-mail between November 7 and November 15. The parties discussed extensively the terms of employment, but Coker ended up declining the offer because she did not want to move. B Coker and Haymond were arrested on November 29, 2005. Haymond killed himself the next day. A grand jury indicted Coker on December 28, 2005, and issued a superseding indictment on February 22, 2006. The superseding indictment charged Coker with one count of conspiring with Haymond and Walsh to defraud the United States, in violation of 18 U.S.C. § 371, three counts of bribery, in violation of 18 U.S.C. § 201

Free access — add to your briefcase to read the full text and ask questions with AI

United States v. Coker, (6th Cir. 2008).

United States v. Coker (United States v. Coker) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

United States v. Lorenza E. Flint
156 F. App'x 252 (Eleventh Circuit, 2005)
United States v. Matthews
168 F.3d 1234 (Eleventh Circuit, 1999)
Hickman v. Taylor
329 U.S. 495 (Supreme Court, 1947)
Brady v. Maryland
373 U.S. 83 (Supreme Court, 1963)
Kyles v. Whitley
514 U.S. 419 (Supreme Court, 1995)
Strickler v. Greene
527 U.S. 263 (Supreme Court, 1999)
Banks v. Dretke
540 U.S. 668 (Supreme Court, 2004)
United States v. McMillon
151 F. App'x 693 (Tenth Circuit, 2005)
United States v. Soto-Beniquez
356 F.3d 1 (First Circuit, 2003)
United States v. Rolando Montes
976 F.2d 235 (Fifth Circuit, 1992)
United States v. Ernest E. Montgomery
990 F.2d 266 (Seventh Circuit, 1993)
United States v. Ronald Bencs
28 F.3d 555 (Sixth Circuit, 1994)
United States v. Tonda Watkins Wright
119 F.3d 390 (Sixth Circuit, 1997)
United States v. Wendell Layne
192 F.3d 556 (Sixth Circuit, 1999)
United States v. Daniel P. Ross
245 F.3d 577 (Sixth Circuit, 2001)
United States v. Michael Charles Vinyard
266 F.3d 320 (Fourth Circuit, 2001)
United States v. Chucks Emuegbunam
268 F.3d 377 (Sixth Circuit, 2001)
United States v. Willie Green, Jr.
305 F.3d 422 (Sixth Circuit, 2002)